Cost of Living in Ann Arbor, MI
Ann Arbor, MI — prices, rents and what jobs really pay here after taxes.
Salary comparison calculator
What would you need to earn in Ann Arbor, MI to keep the same lifestyle — after taxes — as in another city?
How expensive is Ann Arbor, MI?
With a price level of 100.9 (U.S. average = 100), Ann Arbor, MI is close to the national average. In detail, housing costs run 25% above average; everyday goods are 6% below average; utilities are 2% below average; other services such as healthcare and dining cost about the same as the national average. The biggest difference from the national average is in housing.
Prices in Ann Arbor, MI vs. the U.S. average
| Category | Index (U.S. = 100) | Difference |
|---|---|---|
| All items | 100.9 | +0.9% |
| Housing | 125.3 | +25.3% |
| Goods | 93.7 | −6.3% |
| Utilities | 98.2 | −1.8% |
| Other services | 99.6 | −0.4% |
Source: BEA Regional Price Parities, 2024.
Rent in Ann Arbor, MI
| Unit | Monthly rent | Income needed (30% rule) |
|---|---|---|
| Studio | $1,365 | $54,600/yr |
| 1 bedroom | $1,387 | $55,480/yr |
| 2 bedrooms | $1,656 | $66,240/yr |
| 3 bedrooms | $1,986 | $79,440/yr |
| 4 bedrooms | $2,193 | $87,720/yr |
HUD Fair Market Rents, FY2026, population-weighted across the metro's counties.
Salary needed to live in Ann Arbor, MI
To keep the same standard of living as in an average-priced U.S. city, you would need to earn roughly:
| Salary in an average U.S. city | Equivalent in Ann Arbor, MI | Take-home here |
|---|---|---|
| $40,000 | $40,400 | $33,175 |
| $60,000 | $60,500 | $48,471 |
| $80,000 | $80,700 | $62,423 |
| $100,000 | $100,900 | $75,776 |
| $150,000 | $151,300 | $108,500 |
Scaled by the BEA price level (pre-tax). Take-home: single filer, Michigan 2026 taxes. For a tax-aware comparison with a specific city, use the calculator above.
A monthly budget on the median wage
A single worker earning Ann Arbor, MI's median wage of $55,380 takes home about $3,715 a month. A typical one-bedroom rents for $1,387, which is 37% of take-home pay — above the 30% guideline that financial planners suggest. That leaves about $2,328 a month for everything else.
Take-home pay in Ann Arbor, MI
- Federal income tax$4,466
- Social Security (6.2%)$3,434
- Medicare (1.45%)$803
- Michigan income tax$2,103
- Take-home pay$44,575
Marginal rate: 12% federal + 4.25% state
Highest-paying jobs in Ann Arbor, MI
| Job | Median salary | Take-home | Real value* |
|---|---|---|---|
| Software Developer | $126,830 | $92,815 | $92,005 |
| General and Operations Manager | $106,000 | $79,147 | $78,456 |
| Registered Nurse | $103,450 | $77,461 | $76,785 |
| Nursing Assistant | $44,570 | $36,349 | $36,031 |
| Medical Assistant | $43,180 | $35,291 | $34,983 |
| Waiter and Waitress | $40,230 | $33,046 | $32,758 |
| Customer Service Representative | $39,480 | $32,475 | $32,192 |
| Teaching Assistants, Postsecondary | $38,990 | $32,102 | $31,822 |
| Office Clerks, General | $38,350 | $31,615 | $31,339 |
| Janitors and Cleaners, Except Maids and Housekeeping Cleaners | $38,080 | $31,410 | $31,136 |
| Home Health and Personal Care Aide | $36,710 | $30,367 | $30,102 |
| Stocker and Order Filler | $36,230 | $30,002 | $29,740 |
| Recreation Worker | $35,090 | $29,134 | $28,880 |
| Retail Salesperson | $35,040 | $29,096 | $28,842 |
| Fast Food and Counter Worker | $33,220 | $27,711 | $27,469 |
| Cashier | $32,370 | $27,064 | $26,828 |
*In U.S.-average dollars after adjusting for local prices.
Pay and living costs in Michigan cities
Half of Michigan’s 4,403,730 workers earn less than $49,270 a year and half earn more; the middle 50% earn $37,070–$77,910 (BLS, May 2025). Prices vary a lot within the state: Lansing, MI stretches a paycheck furthest, while Flint, MI is the costliest.
| Metro area | Median pay | Price level | 1-BR rent | Rent share | Left after rent / mo | Buying power* |
|---|---|---|---|---|---|---|
| Detroit, MI | $52,080 | 100.3 | $1,128 | 32% | $2,377 | $41,939 |
| Grand Rapids, MI | $47,570 | 95.5 | $1,242 | 39% | $1,977 | $40,432 |
| Ann Arbor, MI | $55,380 | 100.9 | $1,387 | 37% | $2,328 | $44,186 |
| Lansing, MI | $52,800 | 95.0 | $1,012 | 28% | $2,539 | $44,859 |
| Flint, MI | $45,880 | 93.0 | $856 | 28% | $2,256 | $40,142 |
| South Bend, IN | $46,540 | 92.9 | $1,073 | 34% | $2,081 | $40,759 |
| Kalamazoo, MI | $48,510 | 94.8 | $998 | 30% | $2,281 | $41,488 |
| Saginaw, MI | $46,200 | 90.9 | $851 | 27% | $2,281 | $41,356 |
| Traverse City, MI | $47,470 | 93.4 | $1,107 | 34% | $2,106 | $41,292 |
| Muskegon, MI | $46,060 | 92.5 | $942 | 30% | $2,182 | $40,513 |
| Niles, MI | $45,980 | 92.4 | $902 | 29% | $2,216 | $40,513 |
| Jackson, MI | $47,760 | 91.8 | $946 | 29% | $2,285 | $42,249 |
| Battle Creek, MI | $48,690 | 90.5 | $976 | 30% | $2,314 | $43,609 |
| Monroe, MI | $46,240 | 93.5 | $1,011 | 32% | $2,124 | $40,238 |
| Midland, MI | $49,340 | 91.9 | $925 | 28% | $2,407 | $43,492 |
*Yearly take-home pay (on each metro’s median wage, single filer) in U.S.-average dollars. Price level: BEA RPP 2024 (U.S. = 100). Rent: HUD FY2026 one-bedroom fair market rent.
Ann Arbor, MI vs. similar-size cities
| Metro area | Price level | 1-BR rent | Median wage | Jobs |
|---|---|---|---|---|
| Ann Arbor, MI | 100.9 | $1,387 | $55,380 | 219,730 |
| Deltona, FL | 99.4 | $1,393 | $44,940 | 219,740 |
| Springfield, MO | 88.6 | $868 | $45,780 | 223,030 |
| Fort Wayne, IN | 92.6 | $906 | $47,700 | 225,520 |
| Augusta, GA | 91.9 | $1,110 | $45,990 | 231,930 |
| Santa Rosa, CA | 107.8 | $2,155 | $56,850 | 205,260 |
| Springfield, MA | 96.1 | $1,382 | $51,930 | 201,240 |
Frequently asked questions
Is Ann Arbor, MI expensive to live in?
According to the Bureau of Economic Analysis, overall prices in the Ann Arbor, MI metro area are 100.9% of the U.S. average, with housing at 125.3%. It is the #72 most expensive of 387 metro areas we track.
What salary do you need to live in Ann Arbor, MI?
To match the buying power of a $60,000 salary in an average-priced U.S. city you would need about $60,528 in Ann Arbor, MI (before tax differences). The median wage across all jobs here is $55,380.
Can you afford Ann Arbor, MI on the median wage?
A single worker on the $55,380 median wage takes home about $3,715 a month after 2026 taxes; a one-bedroom at $1,387 would take 37% of that.
How much is rent in Ann Arbor, MI?
HUD’s FY2026 fair market rents for Ann Arbor, MI are $1,365 for a studio, $1,387 for one bedroom, $1,656 for two bedrooms and $1,986 for three bedrooms, including utilities.
Top salaries by field in Ann Arbor, MI
Management Occupations
- General and Operations Manager — $106,000
Computer and Mathematical Occupations
- Software Developer — $126,830
Educational Instruction and Library Occupations
- Teaching Assistants, Postsecondary — $38,990
Healthcare Practitioners and Technical Occupations
- Registered Nurse — $103,450
Healthcare Support Occupations
- Nursing Assistant — $44,570
- Medical Assistant — $43,180
- Home Health and Personal Care Aide — $36,710
Food Preparation and Serving Related Occupations
- Waiter and Waitress — $40,230
- Fast Food and Counter Worker — $33,220
Building and Grounds Cleaning and Maintenance Occupations
Personal Care and Service Occupations
- Recreation Worker — $35,090
Sales and Related Occupations
- Retail Salesperson — $35,040
- Cashier — $32,370
Office and Administrative Support Occupations
- Customer Service Representative — $39,480
- Office Clerks, General — $38,350
Transportation and Material Moving Occupations
- Stocker and Order Filler — $36,230